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ACCA Strategic Professional · Strategic Business Leader · Qualities of leadership

Marisol Vega, the new chief executive of Altura Freight, tells staff: 'Our industry is being reshaped by autonomous trucks. I want us to set a new direction, win people over to it and accept that some of our current routines will be disrupted.' Which description of her role best fits Kotter's distinction between leadership and management?

Marisol is exercising leadership. Under Kotter, leadership means setting direction, aligning and motivating people, and coping with change. Management means planning, budgeting, organising and controlling to produce order. Her focus on a new direction and gaining support for disruption is leadership activity.

  1. AShe is exercising leadership, because she is setting direction, aligning people and motivating changeCorrect
  2. BShe is exercising management, because she is planning and budgeting for the coming year
  3. CShe is exercising management, because she is organising and staffing to create order
  4. DShe is exercising management, because she is controlling and solving problems against plan

Explanation

Kotter links leadership with setting direction, aligning people and motivating them, and with coping with change. Management is linked with planning and budgeting, organising and staffing, and controlling and problem solving, which deliver order and consistency. Marisol's statements concern direction and winning commitment to change, so the management options are wrong.

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